In an employment contract, agreements not to compete are:
A) illegal
B) uniformly held to be in the public interest and therefore legal
C) valid only if the restriction protects the employee
D) valid, if the restriction is reasonable and necessary for the protection of the former employer

Question

Quizplus · Accepted Answer

Agreements not to compete are generally valid if they are reasonable and necessary for the protection of the former employer's business interests. However, if the restriction is unreasonable in its scope or duration, it may be deemed invalid or unenforceable by a court. Additionally, some state laws place limits on the enforceability of non-compete agreements, such as requiring a legitimate business interest that the restriction is intended to protect.

In an Employment Contract, Agreements Not to Compete Are